Question 1
4. Turn back to Figure 15.1, which lists the prices of various IBM options. Use the data in the figure to calculate the payoff and the profits for investment in each of the following. October 2011 expiration options, assuming that the stock price on the expiration date is $168. (Figure 15.1) IBM Underlying stock price:166.76 Experation Strike Last Volume Open Interest Last Volume Open Interest Sep 2011 160 9.15 796 1835 2.62 1271 4298 Oct 2011 160 11.95 301 2396 5.35 296 7443 Jan 2012 160 15.00 101 7890 9.40 102 4920 Apr 2012 160 17.35 111 122 13.30 4 71 Sep 2011 165 5.80 1805 3542 4.10 1711 5085 Oct 2011 165 8.70 329 3866 7.00 131 2651 Jan 2012 165 11.70 93 4045 10.85 303 4466 Apr 2012 165 14.30 58 781 - - 54 Sep 2011 170 3.00 3053 7959 6.20 2744 12435 Oct 2011 170 5.86 457 7506 9.25 148 4584 Jan 2012 170 8.93 73 6876 13.00 58 2929 Apr 2012 170 11.32 36 58 - - 52 a. Call option, X= 160 b. Put option, X= 160 c. Call option, X= 165 d. Put option, X =165 e. Call option X= 170 f. Put option, X = 170
Question 2
In a two to three page paper, examine a specific learning theory and relate it to your current or most recent employer. Discuss whether or not the use of this theory would generate the same results in any other organization. The paper must use APA style as outlined in the approved APA style guide. Choose from below theories social learning theory Needs theory Expectancy Theory Goal setting Theory From the instructor not follwing this rule cost me a failing grade. Please be aware of another point; even if you properly credit everything with proper in-text citations and a good reference list, you can still run into problems. When I ask for support in a paper, I am not asking you to give me a ton of quotes or truckloads of paraphrased materials. What I want to see is your work -- your critical thinking and analysis -- supported by research. As a rule, there should never be more than 10-15% of source material in any paper. Using more than that falls into a practice that we in the academic world refer to as "quote dumping".",You wrote a paper last week for me that I recieved zero points for cause it was 62% taken from another source and not original. If it is not original I do not need it. If you decide this causing you more work I understand but I need origanl work if not thanks for all your efforts.
Question 3
Just after their 15th monthly payment, Family A had a balance of $80,000 on a 30-year 10% APR mortgage and Family B had a balance of $80,000 on a 15-year 10% APR mortgage. Whose principal payment was higher in the 16th payment? a. Family A b. Family B c. Both made the same amount of principal payment d. Not enough information to determine -------------------------------- Answer the following questions with this information Historical stock prices of Potty Corp. were given in the following table. No dividends were paid in 2012. Time Stock price January, 2012 $100 February, 2012 $80 March, 2012 $75 April, 2012 $120 May, 2012 $100 You purchased a total of $6,000 of Potty stocks by dollar cost averaging ($1,200 each month) from January to May. What was the value of your investment at the end of May? a. $6,500 b. $5,000 c. $7,000 d. $6,000 It is now May 1st. What is the maximum you be willing to pay for the Potty stock if you are expecting the price to be $150/share in December 30, when you also expect to receive a dividend of $1.20/share? (assuming a 10% MARR compounded monthly)? a. $138 b. $144 c. $141 d. $135 If you purchased $6,000 worth of Potty stocks in January and sold them all in April, what was your monthly rate of return? a. 4.66% b. 20% c. 72.8% d. 5.06% In March, what was the payoff of 1 long call option (100 shares) with an $80/share strike price and a $4/share premium? a. $400 b. ?$7,500 c. $500 d. ?$400 In May, what was the payoff of 2 short put options with a $105/share strike price and a $3/share premium? a. $1,000 b. ?$400 c. $21,000 d. $15,000 ----------------------------------------- Answer the following with the following information, A Target bond has a $1,000 par value, a 3% semiannual coupon rate, 5 full years remaining to maturity, and semiannual interest payments. Currently your money is invested in a portfolio that generates return at the rate of 10% per year, compounded semiannually. What maximum current market price of the bond are you willing to pay? a. $845.57 b. $913.41 c. $1,000.00 d. $875.38 If you purchased the bond today for $980. What is the nominal annual Yield to Maturity? a. 4.98% b. 5.26% c. 6.00% d. 6.47% If you purchased the bond today for $980, what is the NOMINAL annual current yield? a. 3.61% b. 6.12% c. 5.22% d. 6.00%
Question 4
Midterm Exam Submit only the test answers and calculations. Do not submit the test text. Multiple Choices (15 @ 2 points each = 30 points) 1. The value chain is the: (a) sequence of business functions in which value is deducted from products and services of an organization (b) sequence of business functions in which value is proportionately added to the products and services of an organization (c) process by which products and services are critiqued for their value (d) sequence of business functions in which utility (usefulness) is added to the products or services of an organization. 2. Which of the following items is typically an example of an indirect cost of the cost object?which is a piece of expensive custom furniture produced and shipped? (a) courier charges for shipment delivery (b) manufacturing plant electricity (several different products are produced in this plant) (c) direct manufacturing labor (d) wood used for furniture manufacturing. 3. Anything for which a separate measurement of costs is desired is a: (a) cost item (b) cost object (c) fixed cost item (d) variable cost object 4. If there is a change in the level of a cost driver: (a) fixed and variable cost per unit will change (b) fixed and variable cost per unit will be the same (c) fixed cost per unit will be the same and variable costs per unit will change (d) variable costs per unit will be the same and fixed costs per unit will change 5. Which of the following will increase a company?s breakeven point? (a) increasing variable cost per unit (b) increasing contribution margin per unit (c) reducing its total fixed cost (d) increasing the selling price of the unit 6. Which of the following account is NOT classified as an asset on the balance sheet? (a) materials control (b) manufacturing overhead control (c) work-in- process control (d) finished goods control 7. All of the following items are debited to the work-in-process account EXCEPT: (a) allocated manufacturing overhead (b) completed goods being transferred out of the plant (c) direct labor consumed (d) direct materials consumed 8. Variable costs: (a) are always indirect costs (b) increase in total when the actual level of activity increases (c) include most personnel costs and depreciation on machinery (d) can always been traced directly to the cost object 9. Contribution margin equals: (a) revenues minus period costs (b) revenues minus product costs (c) revenues minus variable costs (d) revenues minus fixed costs 10. Operating income calculations use: (a) net income (b) income tax expense (c) Cost of goods sold and operating costs (d) Nonoperating revenues and nonoperating expenses 11. The income statement of a manufacturing company reports: (a) period costs only (b) inventoriable costs only (c) both period and inventoriable costs (d) period and inventoriable costs but at different times; the reporting varies 12. Process costing incorporates the concept of equivalent units which are: (a) identical to the number of physical units being produced (b) the cost objects (c) the collection of inputs needed to produce one fully complete unit of product or output (d) output measured in terms of the finished goods 13. The weighted average process costing method calculates the equivalent units by: (a) considering only the work done during the current period (b) the units started during the current period minus the units in ending inventory (c) the units started during the current period plus the units in ending inventory (d) the equivalent units completed during the period plus the equivalent units in ending inventory 14. A reason why ?pure? FIFO is rarely encountered in process costing is that: (a) FIFO is usually applied within a department to compute the cost of units transferred out (b) the units transferred into a department during a given time period are usually carried at an average unit cost (c) tracking costs on a ?pure? FIFO basis is very difficult (d) All of these answers are correct 15. On occasion, the FIFO and the weighted-average methods of process costing will result in the same dollar amounts of costs being transferred to the next department. Which of the following scenarios would have that result? (a) when the beginning and ending inventories are equal in terms of unit numbers (b) when the beginning and ending inventories are equal in terms of the percentage of completion for both direct materials and conversion costs (c) when there is no ending inventory (d) when there is no beginning inventory Exercises (20 points total) Exercise 1: CVP (10 points) Bridal Shop sells wedding dresses. Each dress?s cost may be separated as follows: selling price of $1,000 and variable costs of $400. Fixed costs are $90,000. Answer the following questions: A. What is Bridal Shop?s operating income when 200 dresses are sold? (a) $30,000 (b) $80,000 (c) $200,000 (d) $100,000. B. How many dresses are sold if the operating income is zero? (a) 225 dresses (b) 150 dresses (c) 100 dresses (d) 90 dresses C. How many dresses must Bridal Shop sell in order to yield after-tax net income of $18,000, assuming the tax rate is 40%? (a) 200 dresses (b) 170 dresses (c) 150 dresses (d) 145 dresses Exercise 2: Cost classifications (10 points) Whippany Manufacturing wants to estimate costs for each product they produce at its Troy plant. The Troy plant produces three products at this plant, and runs two flexible assembly lines. Each assembly line can produce all three products. Required: (a) Classify each of the costs as either direct or indirect for each product. (b) Classify each of the following costs as either fixed or variable with respect to the number of units produced of each product. Direct Indirect Fixed Variable (a) Assembly line labor wages (b) Plant manager?s salary (c) Depreciation on the assembly line equipment (d) Component parts for the products (e) Wages of security personnel for the factory Problems - (50 points total) Problem #1 - Statement of Cost of Goods Manufactured (15 points) Given for the Butler Company for the month of April 2007: Beginning Inventories none Ending Inventories: Direct materials $14,000 Work in process $29,000 Finished Goods $42,000 Direct materials purchased $80,000 Direct labor used $68,000 Manufacturing overhead incurred $44,000 Selling/Administrative expenses $32,000 Sales $173,000 Required: Prepare in good form a statement of cost of goods manufactured and an income statement. Please label each line. Problem #2 - Journal Entries for Job Order Costing (15 points) The Kearney Company uses a job order cost system. The following information relates to September 2007. The company?s accounting year does not end until December 31. a. materials purchased, $150,000. b. direct materials issued to production, $96,000. c. direct labor incurred, $78,000. d. salaries paid to workers, $75,000 (assume no withholdings or taxes). e. manufacturing overhead is applied to production on the basis of $4.00 per direct labor hour. There were 13,000 direct labor hours incurred during September. f. total manufacturing overhead for the month was $54,000. g. production orders costing $200,000 were completed during the month of September. h. production orders costing $190,000 were shipped and invoices during the month, at a profit of 20 percent based on cost. The beginning inventory of work in process was $20,000. a. Prepare the journal entries required to record the above information. b. What is the ending balance (September 30) in the work in process account? Problem #3 - Five Step Procedure for Process Costing (20 points): The following information pertains to one department under a process costing system: Work in process, 12/1/07 ? 1,000 units, 40% complete, consisting of $8,703 of materials and $5,036 of conversion costs. Production completed for December ? 8,200 units. Work in process, 12/31/07 ? 800 units, 20% complete. All materials were introduced at the start of the process while conversion costs are incurred uniformly throughout the process. Materials added during December were $72,000; conversion costs were $83,580. There is no spoilage in this process. Required: Using FIFO, show a schedule of equivalent units, unit costs, and a summary of costs. Read the problem carefully?everything you need to solve it is shown.,please let me know if you can help me with this homework. I dont really know how this process works. last time i tries it did go throught. Thank you,Thank you for accepting it. Can i have it by the due date? It is due today sunday by 6pm
Question 5
Alli Co. is a merchandising business. The account balances for Alli Co. as of November 30, 2012 (unless otherwise indicated), are as follows: 110 Cash $ 73,920 112 Accounts Receivable 37,875 113 Allowance for Doubtful Accounts 3,500 115 Merchandise Inventory 133,900 116 Prepaid Insurance 3,750 117 Store Supplies 2,850 123 Store Equipment 100,800 124 Accumulated Depreciation-Store Equipment 20,160 210 Accounts Payable 21,450 211 Salaries Payable 0 218 Interest Payable 0 220 Note Payable (Due 2017) 10,000 310 P. Williams, Capital (January 1, 2012) 89,510 311 P. Williams, Drawing 40,000 312 Income Summary 0 410 Sales 853,040 411 Sales Returns and Allowances 20,600 412 Sales Discounts 13,200 510 Cost of Merchandise Sold 414,575 520 Sales Salaries Expense 74,400 521 Advertising Expense 18,000 522 Depreciation Expense 0 523 Store Supplies Expense 0 529 Miscellaneous Selling Expense 2,800 530 Office Salaries Expense 40,500 531 Rent Expense 18,600 532 Insurance Expense 0 533 Bad Debt Expense 0 539 Miscellaneous Administrative Expense 1,650 550 Interest Expense 240 Alli Co. uses the perpetual inventory system and the last-in, first-out costing method. Transportation-in and purchase discounts should be added to the Inventory Control Sheet, but since this will complicate the computation of the Last-in, first-out costing method, please ignore this step in the process. They also use the Allowance Method for bad debt. The Accounts Receivable and Accounts Payable Subsidiary Ledgers along with the Inventory Control Sheet should be updated as each transaction affects them (daily). Alli Co. sells four types of television entertainment units. The sale prices of each are: TV A: $3,500 TV B: $5,250 TV C: $6,125 PS D: $9,000 During December, the last month of the accounting year, the following transactions were completed: Dec. 1. Issued check number 2632 for the December rent, $2,200. 3. Purchased four TV C units on account from Prince Co., terms 2/10, n/30, FOB shipping point, $14,800. 4. Issued check number 2633 to pay the transportation changes on purchase of December 3, $400. (NOTE: Do not include shipping and purchase discounts to the Inventory Control sheet for this project.) 6. Sold four TV A and four TV B on account to Albert Co., invoice 891, terms 2/10, n/30, FOB shipping point. 10. Sold two project systems for cash. 11. Purchased store supplies on account from Matt Co., terms n/30, $620. 13. Issued check to Prince Co. number 2634 for full amount due, less discount allowed. 14. Issued credit memo for one TV A unit returned on sale of December 6. 15. Issued check number 2635 for advertising expense for last half of December, $1,500. 16. Received cash from Albert Co. for full amount due (less return of December 14 and discount). 19. Issued check number 2636 to buy two TV C units, $7,600. 19. Issued check number 2637 for $6,100 to Joseph Co. on account. 20. Sold three TV C units on account to Cameron Co., invoice number 892, terms 1/10, n/30, FOB shipping point. 20. For the convenience of the customer, issued check number 2638 for shipping charges on sale of December 20, $600. 21. Received $12,250 cash from McKenzie Co. on account, no discount. 21. Purchased three projector systems on account from Elisha Co., terms 1/10, n/30, FOB destination, $15,600. 25. Received notification that Marie Co. has been granted bankruptcy with no amount of recovery. We are to write-off her amount due. (Note: See page 402 for entry required.) 24. Issued a debit memo for return of $5,200 because of a damaged projection system purchased on December 21, receiving credit from the seller. 26. Issued check number 2639 for refund of cash on sales made for cash, $1,000. (Customer was going to return goods until an allowance was arranged.) 27. Issued check number 2640 for sales salaries of $1,750 and office salaries of $950. 28. Purchased store equipment on account from Matt Co., terms n/30, FOB destination, $800. 29. Issued check number 2641 for store supplies, $550. 30. Sold four TV C units on account to Randall Co., invoice number 893, terms 2/10, n/30, FOB shipping point. 30. Received cash from sale of December 20, less discount, plus transportation paid on December 20. (Round calculations to the nearest dollar.) 30. Issued check number 2642 for purchase of December 21, less return of December 24 and discount. 30. Issued a debit memo for $200 of the purchase returned from December 28. Instructions: 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account (General Ledger). Write Balance in the item section, and place a check mark (?) in the Post Reference column. 2. Journalize the transactions in a sales journal, purchases journal, cash receipts journal, cash payments journal, or general journal as illustrated in chapter 7. Also post to the Accounts Receivable and Accounts Payable Subsidiary ledgers and when needed the Inventory Control Sheet. 3. Total each column on the special journals and prove the journal. 4. Post the totals of the account named columns and individually post the ?other? columns as well to the General Ledger. 5. Prepare the Schedule of Accounts Receivable and the Schedule of Accounts Payable (their total amount must equal the amount in their controlling general ledger account). 6. Prepare the unadjusted trial balance on the worksheet. 7. Complete the worksheet for the year ended December 31, 2012, using the following adjustment data: a. Merchandise inventory on December 31 $110,200 b. Insurance expired during the year 1,250 c. Store supplies on hand on December 31 975 d. Depreciation for the current year needs to be calculated. Alli Co. uses the Straight-line method, the store equipment has a useful life of 10 years with no salvage value. (NOTE: the purchase and return will not be included as the dates of the transactions were after the 15th of the month). e. Accrued salaries on December 31: Sales salaries $480 Office salaries 260 $740 f. The note payable terms are at 8%, payment is not being made until Jan. 3, 2013. Interest must be recognized for one month (round answer to the nearest dollar amount). g. Net realizable value of Accounts Receivable is determined to be $30,000. (Calculate what the Current NRV is to find what the deduction should be.) NRV is the formula of Accounts Receivable ? Allowance = ?. 8. Prepare a multiple-step income statement, a statement of owner?s equity, and a classified balance sheet in good form. 9. Journalize and post the adjusting entries. 10. Journalize and post the closing entries. Indicate closed accounts by inserting a line in both balance columns opposite the closing entry. 11. Prepare a post-closing trial balance.
